At some point in life, downsizing your home may start sounding like a good idea. Your health, lifestyle, and ability to do things can change as you age, often causing a larger home to be more of a problem than a solution. Below are four of the common reasons it might be time to consider downsizing.
Your Home Maintenance is Overwhelming
Larger homes or homes with features such as pools or extra acreage can require a lot of maintenance. This maintenance may become too much for you to handle, or it may begin to take up more of your time or resources than you would like. While you can pay for landscape maintenance and snow removal services, these expenses can quickly add up over the course of a year. Regular maintenance is vital to the overall upkeep and value of a home, so instead of letting it fall by the wayside, you might want to consider moving to a lower maintenance home.
You Have Retired or Will Soon
If you are getting close to retirement age, you may want to consider what your plans will be to enjoy your retirement. If you would like to travel more or have more free time to enjoy hobbies, it may be time to consider a smaller home that will take up less of your time and energy (or require regular house sitters while you are gone). Also, if your home is not paid off, you might want to consider downsizing to save on your monthly payment to help your retirement income take you further.
Your Home is No Longer Affordable
While the mortgage and taxes may be the most expensive cost of homeownership, maintenance, utilities, and repair expenses can also account for a significant portion of your monthly expenses. Many retirees are on a fixed income, and costly heating and cooling bills can be significantly reduced in a smaller home. Also in a more modest home, lower property taxes could help reduce your monthly payment.
You Feel Lonely
If you are on your own in a large home, you may find yourself feeling lonely more often. If this is the case, you might want to consider moving to a community or neighborhood where there are individuals your age to interact with on a daily basis. Many retirement communities offer regular gathering and events so that everyone can stay active and make new friends.
If you start thinking that your home is becoming more of a burden, downsizing may be an excellent option for you.
Do you have questions before making the transition? We would love to help.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as investment, tax, or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.